KAZ Minerals PLC (LON:KAZ) received a higher recommended offer from a consortium led by two of its directors, valuing the Kazakh copper producer at around £4.1bn, as they seek to take the company back into private hands.
Chairman Oleg Novachuk and president Vladimir Kim increased their final cash offer to 850 pence per share, together with a special dividend equal to 27 US cents per share, taking the total offer to about 869p per share.
“Copper market dynamics have evolved since the announcement of the original offer in October 2020, and the final increased offer fully reflects this change,” said Novachuk.
The two directors, who together already hold 39.36% of KAZ Minerals, originally bid 640p a share in October, before raising this to 780p a share last month.
“We had thought that ultimately the offer would need a price of over 900p in order to tempt in minorities who should gain compensation for the near-term growth that the Aktogay expansion would provide,” said Peel Hunt analyst Peter Mallin-Jones.
“This increase feels similar to the last in that it moves the offer to roughly where the share price is (840p at last night’s close) rather than providing a knock-out blow,” he said.
The consortium received acceptances from shareholders holding 59.28% of KAZ Minerals, including stakes held by Novachuk and Kim, as of yesterday.